Daily Timeframe: A nice-looking break above daily supply (1.10980-1.10344) has recently been seen. This break indicates that the path may very well be clear up to at least the 1.11910 level (Quasimodo resistance), which is only 32 pips or so below the weekly Quasimodo (1.12231).
4hr Timeframe: There has been some very interesting developments on the 4hr timeframe. The combined 4hr supply/round number area at 1.10872-1.11033/1.11 has been well and truly consumed.
This move likely indicates that the path north is clear up to at least the 4hr fresh supply area seen at 1.11681-1.11392. With that being said, before this area is hit, we should be prepared for a correction to be seen towards a nice-looking 4hr demand area at 1.10521-1.10677, which is where we’ll be looking to enter long around the 1.10697 level, the reasons for which are as follows:
1. This 4hr demand area is fresh (untouched).
2. This 4hr demand area seems to also be a fakeout of the minor lows to the left (1.10627/1.10632) indicating unfilled buy orders may still be lurking there.
3. The shows that most of the sellers are likely consumed around the daily supply area at 1.10980-1.10344, implying there is room for price to move north at least up to the daily Quasimodo seen at 1.11910.
So, for the time being, it looks like we are back to sitting on our hands with this pair!
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: 1.10697 (Stop loss: 1.10484 Take profit level(s): Dependent on how price approaches. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.